Tesla has taken Zhongjie “Jay” Li, one of their former engineers, to court. They charge that he stole trade secrets related to the company’s cutting-edge robotics technologies. As of Wednesday, our lawsuit was the only one filed concerning these disturbing allegations against Li. It alleges that during his employment at Tesla, Li downloaded sensitive information concerning the company’s Optimus project onto personal devices.
Tesla fired Li in September of 2024. While there, he is said to have done the most groundbreaking research on humanoid robotic hands. He completed much of this research on his workplace computer during his last few months on the job. This work was happening in the background to his online exploration of venture capital and startup funding opportunities. His ludicrous actions were so out there that they even sparked suspicion that he was trying to steal the election. Almost immediately after, he started his own venture, Proception, to build robotic hands.
Proception, which is funded by Y Combinator, was officially formed less than a week after Li’s exit from Tesla. The company had boasted on its website that it had “successfully developed” advanced humanoid robotic hands. Even more astounding, they achieved this remarkable victory within five months of their forming. Above: The designs for these robotic hands are similar to the ones Li had been making at Tesla. Such a shared quality makes the charges against him that much more pointed.
In its suit, Tesla focuses in on the information Li is accused of stealing relating to the development of “advanced robotic hand sensors.” The complaint alleges that, as a result of his actions, he has breached his contractual duties. As a bonus, all of these actions jeopardize the company’s intellectual property.
“advanced robotic hand sensors” – [the lawsuit]
Li’s work has increasingly overlapped with Tesla’s efforts to scale its growing robotics division. For context, CEO Elon Musk has promised to begin selling the Optimus robot by 2026. This aggressive timeline highlights the role of proprietary technology and innovation as a strategic business imperative for Tesla’s future.
TechCrunch is continuing to watch the proceedings in this case. They’re tracking its effect on venture capital flows in the technology sector. According to Becca, a senior writer at TechCrunch, the lawsuit underscores the challenges startups face regarding intellectual property and competition.
Proception, in its promotional materials, claims to aim for a transformative impact in robotics with statements like its mission to “revolutionize human-robot interaction by building the world’s most advanced humanoid hands.”
“revolutionize human-robot interaction by building the world’s most advanced humanoid hands” – [Proception’s website]
This developing story highlights important issues regarding corporate responsibility and where innovation begins and exploitation ends in an increasingly competitive tech landscape. Tesla has indeed been pursuing a legal action against Li. Industry observers are watching closely to see how it all plays out and what it could mean for both parties going forward.